From Nasdaq: 2025-05-28 09:25:00

Salesforce, Inc. (CRM) is set to acquire Informatica Inc. (INFA) for $8 billion in a cash deal to boost its AI capabilities. The acquisition will enhance Salesforce’s data handling and AI integration, positioning the company as a leader in enterprise AI. Investors are urged to consider holding onto CRM stock amidst this strategic move.

Informatica’s data tools will strengthen Salesforce’s AI platform, Agentforce, and Data Cloud product. The acquisition aims to create a comprehensive data platform for AI, enabling better data management for autonomous AI agents. This move aligns with Salesforce’s vision for innovation and competitiveness in the enterprise software space, impacting key competitors like SAP SE and Microsoft Corporation.

Financially, Salesforce’s acquisition of Informatica is structured to be accretive to non-GAAP earnings and free cash flow from the second year onwards. The deal supports Salesforce’s long-term growth strategy without compromising its financial discipline. While Salesforce has faced revenue growth deceleration, the Informatica acquisition is expected to drive top-line growth and enhance the company’s AI capabilities.

Despite a YTD stock price decline of 17.1%, Salesforce’s acquisition of Informatica underscores its commitment to long-term AI innovation. The deal positions Salesforce for stronger competitiveness and innovation in the enterprise software market. With a Zacks Rank #3 (Hold), investors are advised to hold onto CRM stock and anticipate potential upside as the company continues to enhance its AI capabilities.



Read more at Nasdaq: Salesforce’s AI Push Grows With Informatica: Time to Hold the Stock?